[Featured Stock] AI and Robotics Value Reassessed... Kia Touches 200,000 Won

Kia's share price has been strong for several consecutive days. As expectations related to artificial intelligence (AI) and robotics are driving gains across Hyundai Motor Group stocks, there is an assessment that a full-fledged re-rating of Kia's share price is also underway.

As of 9:13 a.m. on the 26th, Kia was trading at 200,000 won, up 3,900 won (1.99%) from the previous trading day. This follows a sharp 13% surge the previous day, marking a record high for the second day in a row.

Hanwha Investment & Securities said of Kia on this day, "Steady growth in the foreign ownership ratio and buying by investors seeking a dividend yield of around 3.46% based on the current share price are supporting a solid share price uptrend," and maintained its "buy" investment rating while raising its target price from 180,000 won to 240,000 won.

This year, Kia is expected to focus on increasing volumes through a new model cycle, even amid a phase of sluggish global demand growth. In the European market, the company plans to begin mass production of the EV2 electric vehicle at its Slovakia plant this month and launch new models such as the EV4 to achieve its sales target of 594,000 units. In the United States, it aims to boost sales to 915,000 units by expanding local production of hybrid electric vehicles (HEVs) such as the Telluride and Sportage.

Kim Seongrae, an analyst at Hanwha Investment & Securities, explained, "In U.S. retail sales in January, Kia was the only major automaker to post double-digit growth, recording a 13.1% increase despite a decline in local demand."

In particular, the reassessment of the value of its robotics stakes was presented as the key basis for the target price upgrade. Kim said, "As verification at Hyundai Motor Group Metaplant America (HMGMA) for the commercialization of 'All New Atlas' gets into full swing, the value of Kia's stake in Boston Dynamics will come into the spotlight." Kia holds an indirect 17.2% stake in Boston Dynamics and a 24.25% stake in Motional's robotaxi business.

Kim added, "Along with solid profit-generating capability in its core automotive business, Kia's role in executing the artificial intelligence (AI) and software-defined vehicle (SDV) strategies is expanding," and predicted, "This will support a continued re-rating of the share price."